MOSCOW (MRC) -- The Union of Plastics Converters has proposed to the Central Bank to allow the sale of large-tonnage polymers on commodity exchanges, for example, on the St. Petersburg International and National Commodity Exchanges (part of the Moscow Exchange), reported Izvestia.
The organization sent a letter to the Central Bank on 1 July , Izvestia got acquainted with it.
Since March 2020, prices of large-tonnage polymers have been constantly growing in the market, the letter says. For example, polystyrene (PS) prices had risen from Rb95/kg to just over Rb170/kg by early spring 2021, the union noted.
Such a sharp increase was caused by a shortage of domestic material on the back of a recovery in global demand, the authors of the letter emphasized. During this period, it was more profitable for producers to export material abroad due to the ratio of exchange rates, Petr Bazunov, General Director of the Union of Plastics Converters, told Izvestia.
The Central Bank considered that the sale of material on the exchange is expedient, according to the regulator's response to the union on July 30. Izvestia got acquainted with it.
The press service of the Central Bank also noted that organized trading is an effective tool for creating a competitive organized market for goods. It is on it that fair pricing can be formed, subject to certain rules.
As MRC reported earlier, in June, 2021, ZapSibNeftekhim (part of SIBUR), Russia's largest polymer production plant, began shipping its products to Latin America, Southeast Asia (Southeast Asia), Africa and South Africa. It is noted that market factors and conditions in the global market at the beginning of 2021, which led to a shortage of polymers in different regions, contributed to the expansion of the sales geography of ZapSibNeftekhim. The complex's production is also supplied throughout Russia, to the CIS countries and Europe, Turkey and China.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.